US stocks rebounded on Friday, snapping four consecutive sessions of losses as oil prices retreated, despite growing expectations of a Federal Reserve rate rise.
The Dow Jones Industrial Average gained 509.19 points, or 0.98%, to 52,573.29. The S&P 500 rose 0.86% to 7,656.98, while the Nasdaq Composite advanced 0.96% to 26,333.04.
For the week, the Dow lost 1.6%, the S&P 500 declined 0.8% and the Nasdaq fell around 0.7%.
US headline CPI rose 0.4% in August and 3.4% from a year earlier, in line with expectations, while core inflation increased 0.3% over the month, slightly more than forecast. Markets are now pricing an approximately 86% chance of a 25-basis-point Fed rate rise this week.
The two-year Treasury yield climbed above 4.6%, reaching its highest level since July 2024.
Oil eased on Friday but remained elevated. WTI fell 2.4% to US$100.05 a barrel and Brent dropped 2.8% to US$104.61, although both posted strong weekly gains amid the Iran war.
Australian Market Outlook
Australian shares are set to start the week higher, with S&P/ASX 200 futures pointing to a gain of around 0.2% after the local market lost nearly 3% last week.
Central banks will dominate the week, with the Federal Reserve and Bank of England meeting on Thursday, followed by the Bank of Japan on Friday.
The Fed will be the main focus, with investors watching for a potential rate rise and signals on whether further tightening could follow later this year.
